Canada, Mexico steelmakers refuse new U.S. orders

[Vinson]

Some steelmakers in Canada and Mexico are telling customers that they are refusing new orders to the U.S. on concerns that President Donald Trump soon will reimpose duties.


Canada’s Stelco has been telling U.S.-based consumers it is pausing sales quotes, according to a person familiar with the matter. Mexico-based steel suppliers also stopped taking orders for material this week as they await potential action from Trump, according to Flack Global Metals, a large buyer.

Trump this week signaled plans to impose previously threatened tariffs of as much as 25% on Mexico and Canada by Feb. 1. While the two countries are exempt from a sweeping 25% steel tariff the U.S. imposed during the first Trump administration, there’s increasing concern in the industry that the metal won’t receive a carve out.

“There’s a lot of trepidation and changing commercial policy by the Mexican steelmakers with regards to their approach to this market,” Jeremy Flack, chief executive officer of Arizona-based steel distributor Flack Global Metals, said in an interview. “They’re off balance because of this. They’ve gone from concerned to unconcerned to concerned again.”

Canada is the top foreign import source of steel into the U.S. and Mexico is the third largest, according to U.S. Commerce Department data. The U.S. consumed about 91 million tons of steel in 2023, with imports accounting for about 27% of that total demand, according to research by Morgan Stanley.

Stelco parent Cleveland-Cliffs Inc., based in the U.S., didn’t immediately respond to requests for comment.

Cleveland-Cliffs, the second-largest U.S. steel producer, agreed to buy Canada-based Stelco last year. When asked last week at a briefing about the possibility that Trump would slap tariffs on the company’s newly owned Canadian steel, CEO Lourenco Goncalves said he will abide by Trump’s policies.

“President Trump will do what President Trump wants to do. He has a plan, and I will play accordingly,” Goncalves said. “I’m a big boy. I bought Stelco knowing that Stelco is in Canada. And you know what? America first.”

Canada, Mexico steelmakers refuse new U.S. orders

Some steelmakers in Canada and Mexico are telling customers that they are refusing new orders to the U.S.

torontosun.com

 

[nottyboi]

the USA is a predatgor and will break agreements in a heartbeat. The have broken scores of agreements with many nations. Its not really worth negotiating with them. Canadas long term vision should be based on an adversarial trade relationship with the USA.

 

[bazokajoe]

Canada's problem is we rely on the US for trade. We desperately need to expand who we trade with.
I would say we are, for a lack of a better word, land locked for trade right now.
Trudeau hasn't done anything but hurt our trade. He banned pipelines so kinda hard to ship oil and NG to anywhere except to US.
Other countries see what kind of government we have when Japan and Germany come here and want to discuss shipping NG and Trudeau says "there is no business case for this". A drama teacher talking about business! What a clown.

 

[jalimon]

Canada's problem is we rely on the US for trade. We desperately need to expand who we trade with.
I would say we are, for a lack of a better word, land locked for trade right now.
Trudeau hasn't done anything but hurt our trade. He banned pipelines so kinda hard to ship oil and NG to anywhere except to US.
Other countries see what kind of government we have when Japan and Germany come here and want to discuss shipping NG and Trudeau says "there is no business case for this". A drama teacher talking about business! What a clown.

Europe is even more pissed off at the US then we are in canada. Look for lots of new trade this way. Europe is even taking about joining BRIC as the US wants to play alone.

 

[Kusa]

Some steelmakers in Canada and Mexico are telling customers that they are refusing new orders to the U.S. on concerns that President Donald Trump soon will reimpose duties.


Canada’s Stelco has been telling U.S.-based consumers it is pausing sales quotes, according to a person familiar with the matter. Mexico-based steel suppliers also stopped taking orders for material this week as they await potential action from Trump, according to Flack Global Metals, a large buyer.

Trump this week signaled plans to impose previously threatened tariffs of as much as 25% on Mexico and Canada by Feb. 1. While the two countries are exempt from a sweeping 25% steel tariff the U.S. imposed during the first Trump administration, there’s increasing concern in the industry that the metal won’t receive a carve out.

“There’s a lot of trepidation and changing commercial policy by the Mexican steelmakers with regards to their approach to this market,” Jeremy Flack, chief executive officer of Arizona-based steel distributor Flack Global Metals, said in an interview. “They’re off balance because of this. They’ve gone from concerned to unconcerned to concerned again.”

Canada is the top foreign import source of steel into the U.S. and Mexico is the third largest, according to U.S. Commerce Department data. The U.S. consumed about 91 million tons of steel in 2023, with imports accounting for about 27% of that total demand, according to research by Morgan Stanley.

Stelco parent Cleveland-Cliffs Inc., based in the U.S., didn’t immediately respond to requests for comment.

Cleveland-Cliffs, the second-largest U.S. steel producer, agreed to buy Canada-based Stelco last year. When asked last week at a briefing about the possibility that Trump would slap tariffs on the company’s newly owned Canadian steel, CEO Lourenco Goncalves said he will abide by Trump’s policies.

“President Trump will do what President Trump wants to do. He has a plan, and I will play accordingly,” Goncalves said. “I’m a big boy. I bought Stelco knowing that Stelco is in Canada. And you know what? America first.”

Canada, Mexico steelmakers refuse new U.S. orders

Some steelmakers in Canada and Mexico are telling customers that they are refusing new orders to the U.S.

torontosun.com

Vinson, Vinson, Vinson, I missed you during fruitful conversations, welcome back!

Now, onto the substance:

America, America, America. Tariffs on Canadian, Chinese, and Mexican goods are the talk of the town—1 vs. 3.

But let’s flip the script: imagine Canada, China, and Mexico imposing equivalent tariffs on American goods—3 vs. 1.

"America First" might just backfire...

Fact 1: A manager at a manufacturing company in Vaughan told me their American buyers admit they have limited alternatives if Canada retaliates with tariffs and simply pass the increased costs to consumers.

Fact 2: An American exporter recently shared concerns about their business, worried their Canadian buyer might seek alternatives elsewhere.

 

[nottyboi]

Canada's problem is we rely on the US for trade. We desperately need to expand who we trade with.
I would say we are, for a lack of a better word, land locked for trade right now.
Trudeau hasn't done anything but hurt our trade. He banned pipelines so kinda hard to ship oil and NG to anywhere except to US.
Other countries see what kind of government we have when Japan and Germany come here and want to discuss shipping NG and Trudeau says "there is no business case for this". A drama teacher talking about business! What a clown.

Its not easy, they are next door, have a very similar culture and tastes, similar laws. etc. They are even typically easier to do business with then whiny Canadians lol.

 

[bazokajoe]

Its not easy, they are next door, have a very similar culture and tastes, similar laws. etc. They are even typically easier to do business with then whiny Canadians lol.

I understand that. But we do need to expand our trade relations with other countries. You can't deny that.

 

[kstanb]

standard business practice, if you know the price will go up next week, you won't allow customers to over-stock at current prices

 

[Shaquille Oatmeal]

Canada's problem is we rely on the US for trade. We desperately need to expand who we trade with.

Yup.
We put all our eggs in one basket.
Constantly being friendly with the shit hole down south, tagging along with everything they do and we've shot ourselves in the foot.
We need to expand and trade globally, divest from the US and invest more elsewhere and focus on building domestic manufacturing more.

 

[mandrill]

Yup.
We put all our eggs in one basket.
Constantly being friendly with the shit hole down south, tagging along with everything they do and we've shot ourselves in the foot.
We need to expand and trade globally, divest from the US and invest more elsewhere and focus on building domestic manufacturing more.

Except America has been a reasonable ally up until the current klown show.

 

[Shaquille Oatmeal]

Except America has been a reasonable ally up until the current klown show.

It is still a lesson and a wake up call for us.

 

[nottyboi]

It is still a lesson and a wake up call for us.

Or we can just refuse to talk to them until 2029 Board up the embassy for 4 years,

 

[mandrill]

It is still a lesson and a wake up call for us.

Nothing remotely comparable to the far right Trumpoid era has occurred in American politics for 100+ years.

 

[Shaquille Oatmeal]

Nothing remotely comparable to the far right Trumpoid era has occurred in American politics for 100+ years.

I think the next 4 years will tell us which way the American right will go from here.
I am not positive that they will trend in the right direction and I think we need to preempt and be more proactive.

 

[TauCeti]

Canada and Mexico need to grow a pair and fight fire with fire.

 

[Vinson]

Vinson, Vinson, Vinson, I missed you during fruitful conversations, welcome back!

Now, onto the substance:

America, America, America. Tariffs on Canadian, Chinese, and Mexican goods are the talk of the town—1 vs. 3.

But let’s flip the script: imagine Canada, China, and Mexico imposing equivalent tariffs on American goods—3 vs. 1.

"America First" might just backfire...

Fact 1: A manager at a manufacturing company in Vaughan told me their American buyers admit they have limited alternatives if Canada retaliates with tariffs and simply pass the increased costs to consumers.

Fact 2: An American exporter recently shared concerns about their business, worried their Canadian buyer might seek alternatives elsewhere.

Kusa Kusa Kusa, I'm glad you like my posts. Whatever retaliation available I'm all for them.

 

[JohnLarue]

“President Trump will do what President Trump wants to do. He has a plan, and I will play accordingly,” Goncalves said. “I’m a big boy. I bought Stelco knowing that Stelco is in Canada. And you know what? America first.”

so he will bite the bullet and idle stelco production. laying off the Canadian workforce
Trump is going to squeeze Canada leading into the USMCA negotiations

Vinson, Vinson, Vinson, I missed you during fruitful conversations, welcome back!

Now, onto the substance:

America, America, America. Tariffs on Canadian, Chinese, and Mexican goods are the talk of the town—1 vs. 3.

But let’s flip the script: imagine Canada, China, and Mexico imposing equivalent tariffs on American goods—3 vs. 1.

"America First" might just backfire...

Fact 1: A manager at a manufacturing company in Vaughan told me their American buyers admit they have limited alternatives if Canada retaliates with tariffs and simply pass the increased costs to consumers.

Fact 2: An American exporter recently shared concerns about their business, worried their Canadian buyer might seek alternatives elsewhere.

Yes the US does run the risk of losing international sales in a Trade/ Tariff war

However it is not a one for one trade off
1. The US economy is much more domestic orientated than export orientated countries i.e Canada, Mexico ... China is also domestically oriented so a little better positioned
2. A lot of US products such as Tech, Pharmaceuticals , health care products, / equipment, specialized materials aerospace, military is top shelf vs competitors and much higher margins than commodities (Price takers, not Price setters)

Eg. Canada will still need to buy Microsoft products even if a 100% input tariff is placed on them (Yes there are competitors, but practically speaking business are not going to switch out Microsoft on mass)

So the US can weather a Trade/ Tariff war better / longer
He loves doing deals , this is softening up the opposition before a sit down negotiation for a new deal where he can claim a win.

The USMCA deal opens up for renegotiation in 2026
So he is going to squeeze us for a year and then we negotiate a new deal

Canada needs to get its shit together pretty soon.

 

[JohnLarue]

Canada's problem is we rely on the US for trade. We desperately need to expand who we trade with.
I would say we are, for a lack of a better word, land locked for trade right now.
Trudeau hasn't done anything but hurt our trade. He banned pipelines so kinda hard to ship oil and NG to anywhere except to US.
Other countries see what kind of government we have when Japan and Germany come here and want to discuss shipping NG and Trudeau says "there is no business case for this". A drama teacher talking about business! What a clown.

extremely irresponsible too.
his personal ideology was a priority over the economic interests of Canada wrt "there is no business case for this".

 

[JohnLarue]

I understand that. But we do need to expand our trade relations with other countries. You can't deny that.

that is right
however that has been a priority for decades
Crietian was running around a big wall (literally !) signing deals - credit due to him for the effort and enthusiasm , China was perceived much differently then
Harper signed a lot of deals
Trudeau signed something with the UK -It was Harpers deal , however if you insist- one for Justin
The results overall probably incremental good but not transformational
By all means keep exploring for new deals

However we are economically tied at the hip with the U.S. and we will need to deal with this threat and be smart about the approach